| National Housing Law Project Housing Law Bulletin |
|
Section 8 Vouchers: Effect of Payment Standard at 90%, 100% and 110% of Fair Market Rent
Assume FY 2000 Fair Market Rent (FMR) in Anytown is $737 (w. utilities) for a 2 BR Unit. Sample Family: Household adjusted income is $11,000 ($917 per month), therefore 30% of monthly adjusted income of $917 is $275.
Scenario #1: Payment Standard = 100% of FMR ($737)
|
Gross Rent |
$700 |
$800 |
$900 |
|
Payment Standard |
$737 |
$737 |
$737 |
|
Tenant Share |
$275 |
$338 ($275 + $63) |
$438 ($275 + $163) |
|
Result |
Payment Standard is greater than the rent + utilities, so tenant share is 30% of income. |
Payment Standard is lower than the gross rent, so tenant share is 37% of income. |
Tenant share is 48% of income. PHA may not allow tenant to use voucher for this apartment. |
Scenario #2: Payment Standard = 90% of FMR ($663)
|
Gross Rent |
$700 |
$800 |
$900 |
|
Payment Standard |
$663 |
$663 |
$663 |
|
Tenant Share |
$312 ($275 + $37) |
$412 ($275 + $137) |
$512 ($275 + $237) |
|
Result |
Payment Standard is lower than the rent, so tenant share 34% of income. |
Tenant share is 45% of income. PHA may not allow tenant to use voucher for this apartment. |
Tenant share is 56% income. PHA may not allow tenant to use voucher for this apartment. |
Scenario #3: Payment Standard = 110% of FMR ($810)
|
Gross Rent |
$700 |
$800 |
$900 |
|
Payment Standard |
$810 |
$810 |
$810 |
|
Tenant Share |
$275
|
$275 |
$365 ($275 + 90) |
|
Result |
Payment Standard is higher than the rent, so tenant share is 30% of income. |
Payment Standard is higher than the rent; tenant share is 30% of income. |
Payment Standard is lower than the rent, so tenant share is 39.8% of income. |
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